Americas Data Center Colocation Market Growth Insights – Investment to Reach USD 92.90 Billion, Market Area to Reach 32.36 Million Sq. Ft., Power Capacity to Exceed 8,141 MW, and Colocation Revenue to Reach USD 53.66 Billion by 2031.

Based on the infrastructure, general construction dominates and holds the largest Americas data center colocation market share in 2025. General construction in data centers consists of building development plans, including site preparation and core and shell development, installation and commissioning services, building design services, including architectural and engineering design, security systems such as fire and smoke detection, intruder detection systems, access control, closed-circuit television (CCTV) surveillance, external vehicle crash barriers, external security fences, and mantraps, as well as data center infrastructure management (DCIM).

The growing demand for colocation facilities across the Americas is increasing investments in new data center construction and expansion projects. The rising adoption of cloud computing, AI, and high-performance computing is encouraging operators to develop larger and more advanced facilities, increasing demand for construction, design, installation, and security services.

Based on the electrical infrastructure, the UPS segment shows a significant share of around 28% in 2025. The increasing need for reliable and uninterrupted power supply is encouraging data center operators across the Americas to deploy N+1 and 2N redundant backup generators, supporting higher data center uptime and operational resilience. In addition, the growing focus on reducing carbon emissions is expected to drive the adoption of HVO-powered generators across the Americas data center market.

For instance, Digital Realty has adopted Hydrotreated Vegetable Oil (HVO) for backup generators at its PDX12 (Hillsboro, Oregon), SC1 (Santa Clara, California), and LAX12 (El Segundo, California) data centers. The renewable diesel alternative supports lower-carbon backup power operations and is expected to reduce CO₂ emissions by approximately 12,000 metric tons.

The cooling systems segment dominated the mechanical infrastructure of the Americas data center colocation market in 2025, owing to the increasing adoption of efficient cooling solutions across data center facilities in the Americas. Data center facilities commonly deploy a combination of air-based, water-based, and increasingly liquid-based cooling systems, depending on climate, facility design, and rack density. In terms of redundancy, N+1 and 2N configurations are widely adopted in Tier III and Tier IV facilities to maintain continuous cooling availability during equipment failures or maintenance. The growing deployment of AI, GPU, and high-performance computing workloads is increasing rack power densities and driving greater adoption of direct-to-chip liquid cooling and other advanced liquid-based cooling technologies to manage higher thermal loads efficiently.

Based on the cooling system, the CRAC & CRAH Units account for the largest share of the Americas data center colocation market in 2025. CRAC and CRAH systems are evolving from standalone room-level cooling units into intelligent, hybrid, and modular cooling components integrated with free cooling, AI-driven controls, and liquid cooling ecosystems to support high-density data center environments.

This evolution is driving the adoption of advanced CRAC and CRAH cooling solutions across colocation facilities. For instance, the MTL2 facility of Cologix utilizes DX cooling with free-cooling capabilities and centralized humidification, highlighting the adoption of efficient and advanced cooling systems in the Americas data center colocation market.

In terms of general construction, the core & shell development segment contributes around 48% of the market share in 2025. The Americas data center colocation market is witnessing the development of greenfield and brownfield facilities, along with the expansion of large-scale AI-ready and hyperscale campuses across the US, Canada, and Latin America. Owing to growing power demand and grid constraints in major US data center hubs, operators are increasingly prioritizing dedicated substations, on-site power generation, renewable energy integration, and advanced cooling infrastructure. These requirements are increasing the complexity and scale of data center construction, creating additional opportunities for general construction, electrical, mechanical, and specialized infrastructure contractors across the region.

In July 2026, QTS Data Centers announced to develop up to 11 data center buildings across approximately 465 acres at Lancium's Clean Campus in Hall County, Texas, backed by a 1 GW grid connection and expected to generate more than $10 billion in capital investment.

Based on tier standards, Tier III dominates the Americas colocation data center market with the largest share. A Tier III data center is constructed with a higher level of reliability and a minimum redundancy of N+1 in both power and cooling systems. This design results in approximately 1.6 hours of downtime annually, providing operational availability of around 99.982%.

The demand for highly reliable infrastructure is also supporting the expansion of Tier IV data centers across the Americas, with more than 25 Tier IV facilities located across countries including the US, Canada, Mexico, Colombia, and Chile. The growing presence of Tier IV facilities reflects the increasing demand for highly resilient infrastructure with fault-tolerant systems and continuous availability for critical workloads.

The Americas data center colocation market by colocation services is segmented into retail and wholesale colocation. The retail colocation service accounted for the largest market share of around 57% in 2025. Retail colocation data centers follow a multi-tenant business model and allow customers to rent half, full, or multiple rack spaces, generally supporting capacities of less than 250 kW. Customers using retail colocation services pay for rack space, power, bandwidth, cloud connectivity, and interconnectivity, with costs varying depending on the service provider and the services adopted.

Retail colocation services are highly suitable for enterprises that require lower computing power at a single site or across multiple locations to serve global and local customers. The flexibility to scale rack space, power, and connectivity based on business requirements is supporting the adoption of retail colocation services across the Americas.

The liquid-based cooling techniques shows highest growth with a CAGR of 17.84% during the forecast period. Advanced cooling technologies are rapidly evolving in hyperscale and AI-driven data centers, with operators and vendors shifting from traditional air-based systems to liquid cooling, immersion cooling, and emerging alternative mediums to efficiently manage the rising GPU heat densities as well as improve energy and water efficiency.

QScale leverages Canada’s cold climate to provide free cooling for up to 80% of the year at its flagship QScale Q01 campus near Quebec City. This eco-efficient approach cuts energy use for high-density AI and HPC workloads.